Financial reporter Liu Xiao
According to Xinhua News Agency, Premier Li Qiang presided over an executive meeting of the State Council on July 19 to study and implement the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, study and strengthen policies and measures to support large-scale equipment renewal and trade-in of consumer goods, and deliberated and passed the "Regulations on the Placement of Retired Servicemen (Draft)". The meeting pointed out that large-scale equipment renewal and consumer goods trade-in traction is strong, and increasing policy support is conducive to better releasing the potential of domestic demand. The meeting decided:
Coordinate the arrangement of ultra-long-term special treasury bond funds to further promote large-scale equipment renewal and consumer goods trade-in.
Optimize the support method for equipment renewal projects, expand the scope of support to equipment renewal in the fields of energy and power, old elevators, and energy conservation, carbon reduction and safety transformation in key industries, lower the application threshold, and simplify the approval process.
Support the scrapping and renewal of old operating ships and old operating trucks, increase the renewal subsidy standards for agricultural machinery and new energy buses, and increase the proportion of financial discount for equipment renewal loans.
Support local governments to enhance the ability to trade in consumer goods, increase subsidies for scrapping and updating automobiles and trade-in household appliances, and implement financial support policies for the recycling and disposal of waste electrical and electronic products.
Create a good market environment, support enterprises with different ownership systems and different registered places to enjoy the policy without discrimination, and ensure that the policy is implemented.
On December 26, 2023, at Hyundai Di Wanlun Construction Machinery Co., Ltd., workers produce excavators on an assembly line. Xinhua News Agency file photo
It is not only good for the present, but also good for the long term
Promoting a new round of large-scale equipment renewal and trade-in of consumer goods is a major decision made by the CPC Central Committee with an eye on the overall situation of high-quality development in the mainland.
The Central Economic Work Conference requires that large-scale equipment renewal and consumer goods be replaced by improved technology, energy consumption, emission and other standards. The fourth meeting of the Central Financial and Economic Commission emphasized that accelerating product upgrading is an important measure to promote high-quality development, and it is necessary to encourage and guide a new round of large-scale equipment renewal and consumer goods trade-in. This year's "Government Work Report" proposes to promote the renewal and technological transformation of various production equipment and service equipment; Encourage and promote the trade-in of consumer goods.
Since the beginning of this year, the mainland has continued to promote large-scale equipment renewal and consumer goods trade-in actions, and has successively introduced a series of favorable policies.
In March this year, the State Council officially issued the "Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in", which clarified 20 key tasks in 5 aspects, requiring the focus on the implementation of equipment renewal, consumer goods trade-in, recycling and recycling, and standard improvement "four major actions"; In April, the People's Bank of China announced the establishment of a 500 billion yuan re-loan for scientific and technological innovation and technological transformation, encouraging and guiding financial institutions to increase financial support for technology-based small and medium-sized enterprises and technological transformation and equipment renewal projects in key areas; In June this year, the Ministry of Finance actively studied and put forward a list of fiscal and taxation policy measures, requiring the use of various tools such as subsidy funds, government bonds, taxation, government procurement, and financial interest discounts. At the same time, local governments at all levels are also introducing support policies according to local conditions, and the driving effect has initially appeared, which has strongly supported the economic recovery trend.
Luo Zhiheng, chief economist of Guangdong Kai Securities, said in an interview with Fengkou Finance that promoting large-scale equipment renewal and trade-in of consumer goods is to effectively promote investment and consumption, boost demand and confidence; the second is to improve advanced production capacity, eliminate backward production capacity, and speed up market clearance; The third is to accelerate industrial transformation and upgrading, and promote green and low-carbon development.
He believes that from the perspective of industrial transformation and upgrading and green economic development, the stock equipment of enterprises and residents has a lot of room for upgrading, promoting the continuous increase in the proportion of advanced production capacity, more high-quality durable consumer goods into the lives of residents, and recycling waste resources, which is not only beneficial to the present but also beneficial to the long-term.
Wang Qing, chief macro analyst of Oriental Jincheng, believes that the current durable consumer goods such as automobiles and home appliances are in a critical stage of green transformation. Focusing on encouraging the large-scale trade-in of these commodities can not only promote high-quality durable consumer goods to enter residents' lives more quickly, so that more residents can experience the sense of gain brought by industrial transformation and upgrading, but also provide a driving force for the supply side to continue to accelerate the green transformation, and consolidate the mainland's technological leadership in related fields.
On April 22, in the production workshop of an equipment manufacturing enterprise located in the high-tech zone of Liupanshui City, Guizhou Province, the robotic arm carried out welding operations. Xinhua News Agency
It will contribute to the realization of the annual economic and social development goals
The Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC) analyzed the current situation and tasks, and stressed the need to unswervingly achieve the economic and social development goals for the whole year. The executive meeting of the State Council also stressed that it is necessary to do a solid job in the second half of the year in accordance with the decisions and arrangements of the Party Central Committee on economic work, and unswervingly achieve the economic and social development goals for the whole year.
Yang Chang, chief analyst of the policy team of Zhongtai Securities Research Institute and chief expert of the Institute of Public Policy and Governance of Shanghai University of Finance and Economics, said in an interview with Fengkou Finance that the National Standing Committee once again deployed to promote a new round of large-scale equipment renewal and consumer goods trade-in, precisely in order to do a solid job in the second half of the year and unswervingly achieve the annual economic and social development goals.
He believes that from the economic data in the first half of the year, GDP increased by 5.0% year-on-year, continuing the recovery trend, but there are signs of short-term fluctuations, to achieve the annual growth target of about 5%, which means that hard work is still needed in the second half of the year. In view of the overall requirement of "actively expanding domestic demand" in the communiqué of the plenum, further promoting large-scale equipment renewal and trade-in of consumer goods is conducive to giving full play to the characteristics of strong traction and driving force and better releasing the potential of domestic demand.
Zhou Maohua, a macro researcher at the financial market department of Everbright Bank, also believes that the fundamentals of the mainland's long-term economic growth have not changed, and the general trend of high-quality development has not changed, but judging from the economic data in the first half of the year, domestic commodity consumption continues to be below the trend level, and the effective demand is weak.
"Next, large-scale equipment renewal and trade-in of consumer goods, the issuance of special treasury bonds and the acceleration of the use of local government bond funds will become an important starting point for promoting the recovery of consumption and domestic demand." Zhou Maohua said that to promote the accelerated implementation of policies, it is inseparable from the coordination and support of policies of fiscal and taxation, industry and finance departments. With the accelerated implementation of these policy measures, the momentum of domestic demand in the mainland is expected to further strengthen in the second half of the year, which will also help boost the market's expectations for the prospects of economic recovery.
Yang Chang believes that from the perspective of high-frequency data, infrastructure construction projects are still in the process of steady acceleration, make full use of the time window, and make overall arrangements for ultra-long-term special treasury bond funds to support equipment renewal and consumer goods trade-in, which can make more effective use of stock policy tools and give full play to the supporting role of consumption in expanding domestic demand.